🤜 Morgan Stanley turns bullish

and retail earnings

Good morning investors! Yesterday was mixed with Bitcoin briefly hitting a new record near $110,000. Market breadth, however, was overwhelmingly negative, with declining stocks outnumbering gainers nearly six to one on the NYSE.

Today we cover:

  • Morgan Stanley goes bullish

  • Stock market slips

  • Retail and more earnings

Apple has shown consistent movement on certain dates over the years—do you know when? Stock Hotsheets reveal historically significant patterns for top stocks like Walmart and LULU. Find out more today.

Which platform do you prefer to stay updated and interact with other investors?

Login or Subscribe to participate in polls.

📊 Economy and News 

Morgan Stanley Turns Bullish on U.S. Assets, Sees Weakness in Dollar

Morgan Stanley upgraded its outlook on U.S. stocks and Treasuries to overweight, citing easing tariff concerns, no recession risk, and potential for further rate cuts. The firm expects U.S. corporate earnings to rebound and equities to benefit from slowing inflation and a weaker dollar.

It now sees the S&P 500 reaching 6,500 by Q2 2026, earlier than previously forecast. Treasury yields are also projected to decline, with the 10-year yield expected at 3.45% by mid-2026, down from the current 4.48%.

The dollar remains an outlier in the bank's bullish U.S. stance. With U.S. growth and rates converging with global peers, Morgan Stanley predicts continued weakness in the greenback, forecasting a 9% decline in the dollar index to 91 over the next year. It sees EUR/USD at 1.25 and USD/JPY at 130 by Q2 2026.

Global hits:

Check this: OpenAI is buying iPhone designer Jony Ive’s AI devices startup for $6.4 billion. Also, Senate passed a surprise ‘no tax on tips’ bill. And, Hinge Health prices IPO at $32, the top end of expected range.

Sponsored by Geneva Tourism

Did you know that the World Wide Web was born in Geneva, Switzerland? Indeed, the first version of the Internet cropped up at CERN in 1989.

Today the world-renowned center is home to the largest particle accelerator and to the CERN Science Gateway – a must-see hub for science enthusiasts that features hands-on exhibits, immersive virtual reality experiences, and live demonstrations.

📈 Stocks

S&P 500 5,844.61 (-1.61%)
DJIA 41,860.44 (-1.91%)
NASDAQ 18,872.64 (-1.41%)
BRENT CRUDE 64.91 (-0.59%)
* Prices as of May 22nd, 12:20 AM UTC

Wall Street Slides on Debt Concerns and Weak Bond Demand

U.S. markets tumbled Wednesday as rising Treasury yields and fears over America’s ballooning debt weighed heavily on sentiment.

A disappointing $16 billion auction of 20-year bonds signaled weak investor appetite, driving yields higher and stocks lower. Treasury yields climbed, with the 10-year hitting 4.589% and the 30-year reaching 5.08%.

The fiscal outlook continued to darken as investors assessed President’s sweeping tax-cut proposal, which could add up to $5 trillion to the national debt. Political division in the House stalled progress, while Moody’s recent downgrade of U.S. credit intensified pressure.

The dollar weakened broadly, oil fell on signs of revived U.S.-Iran nuclear talks, and gold rose.

Despite the broader selloff, Alphabet gained 2.7%, while Apple, Nvidia, and Tesla posted losses.

One of the biggest losers was UnitedHealth that sank -6% after a report about undisclosed payments to nursing homes in bonuses to help reduce hospital transfers for ailing residents. Also, HSBC downgraded the stock to "reduce" from "hold".

Wolfspeed plummeted nearly 60% on bankruptcy fears.

Controversial: Microsoft says 394,000 Windows computers infected by Lumma malware globally. Elsewhere, Nvidia’s Jensen Huang says U.S. chip restrictions have cut Nvidia’s China market share nearly in half.

British retailer Marks & Spencer said Wednesday that a recent cyberattack will wipe out more than one-third in its annual profits.

Nike will raise prices on a range of items as soon as this week, as retailers brace for tariffs to hit their profits. Also, Nike confirmed that its shoes are officially returning to Amazon, for the first time since 2019.

Lastly, Moderna has pulled its FDA application for a flu-COVID combo vaccine, choosing to wait for late-stage flu shot trial data. It plans to resubmit later this year after interim results, in line with updated FDA rules requiring placebo trials for COVID boosters in healthy adults under 65.

Earnings:

  • Target reported weaker-than-expected first-quarter results and lowered its full-year profit forecast. Comparable sales fell 3.8%, double the expected 1.9% drop, with the company gaining or holding share in only 15 of 35 tracked categories. Target held $13.1 billion in inventory and repurchased $251 million in stock. It now expects 2024 EPS between $7.00 and $9.00, below the $8.34 consensus. Shares dropped -5.2% as the company cited soft discretionary spending, tariff uncertainty, and controversy over changes to its DEI programs.

  • Xpeng shares jumped after the company beat first quarter earnings expectations. The firm said it expects to deliver between 102,000 and 108,000 of its electric cars in the second quarter of this year. Xpeng shares have rallied 66% this year thanks to strong deliveries.

  • Shares of Canada Goose soared after the company reported fiscal fourth-quarter earnings that beat analysts’ estimates. The luxury retailer said it will not be providing a financial outlook for fiscal 2026 due to “ongoing macroeconomic uncertainty and dynamic consumer spending patterns brought on by the unpredictable global trade environment.” Canada Goose’s revenue was up 7.4% from the same period last year.

  • Lowe’s reaffirmed its full-year forecast, which puts the retailer on track for year-over-year sales growth. The company beat Wall Street’s quarterly earnings expectations, but came in just shy of revenue estimates.

  • Snowflake reported Q1 revenue of $1.0B, up 26% YoY, and an adjusted eps of 24C, both beating expectations.

Exciting: Amazon CEO Andy Jassy says tariffs haven’t dented consumer spending. Elsewhere, Toyota redesigns America’s top-selling RAV4 SUV to exclusively be a hybrid.

Also, Cigna’s Evernorth unit said a new coverage deal with Eli Lilly and Novo Nordisk will bring lower copays for insured patients.

Lastly, CoreWeave shares soar 19% after $2 billion debt offering.

💵 Personal Finance

Jensen Huang’s Advice on Using AI for Career Success

Nvidia CEO Jensen Huang believes that learning to use artificial intelligence (AI) is crucial for career success.

In a January episode of the “Huge Conversations” show with Cleo Abram, Huang said, “The first thing I would do is to learn AI,” referring to tools like ChatGPT, Gemini Pro, and Grok.

He emphasized that interacting with AI is like asking thoughtful questions, requiring skill and precision.

Prompt AI Effectively for Better Results
Huang’s advice aligns with insights from Kelly Daniel, Lazarus AI prompt director, who compares AI to a “smart kid” who needs clear context to deliver useful responses.

Vague queries, like “Tell me about your business?” often confuse AI, just as they would an entrepreneur. Instead, specific prompts yield better outcomes. For example, asking, “Can you explain the first steps to launching an online retail business?” provides clarity.

Daniel suggests organizing prompts with lists or steps and including examples.

Apply AI Across All Careers
Huang urges everyone, regardless of their field, to leverage AI to improve their work.

“If I were a student today, irrespective of whether it’s for math or science or chemistry or biology—doesn’t matter what profession—I’m going to ask myself, ‘How can I use AI to do my job better?’” he said.

This is critical as AI’s impact grows—LinkedIn’s 2025 Work Change report predicts 70% of job skills could shift due to AI by 2030. Yet, only 11% of Americans aged 14 to 22 use generative AI weekly, per a 2024 report.

By mastering AI prompting and asking better questions, you can stay ahead in any career, making AI a powerful tool for success.

💰 Be a Better Investor

“Wealth is the ability to fully experience life.”

Henry David

Think you know stocks?

Pro puts your instincts to the test with our Bull vs Bear AI stock advisor. Plus: exclusive deep dives, smarter tools, and zero fluff. 

What did you think of today's newsletter?

Login or Subscribe to participate in polls.

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.